eSIM Market is Estimated To Witness High Growth Owing To Trend of Connected Devices
The eSIM Market is estimated to be valued at US$ 14717.07 Mn in 2023 and is expected to exhibit a CAGR of 16% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
An eSIM is an embedded SIM that allows consumers to activate and switch cellular plans digitally. eSIMs are embedded directly into devices like smartphones, smartwatches, tablets instead of using physical SIM cards. eSIM provides advantages like easy switching between cellular operators, travel flexibility by buying local plans conveniently and dual SIM functionality on a single device. The growing adoption of internet of things and connected devices is driving the demand for eSIM as it allows hassle-free connectivity on various devices.
Market key trends:
The key trend driving the eSIM market growth is the increasing proliferation of connected devices. The growing adoption of internet of things is expanding the scope of connectivity solutions beyond smartphones. Devices like smartwatches, laptops, tablets, utilities meters and various industrial machines are integrating cellular connectivity which is fueling the demand for eSIM. As eSIM eliminates the need for physical SIM cards, it allows seamless connectivity and remote management of various smart devices. Moreover, eSIM offers better security as hackers cannot remove physical SIM cards easily. The ability to switch operators and plans digitally also provides more flexibility to consumers. Major mobile operators are also supporting eSIM activation to stimulate new revenue streams from IoT connections. This rising connectivity of more devices is expected to propel the eSIM market size during the forecast period.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is moderate as eSIM technology requires a high upfront cost and partnerships with mobile operators which pose entry barriers.
Bargaining power of buyers: The bargaining power of buyers is high due to the presence of several eSIM solution providers and options available for consumers.
Bargaining power of suppliers: Mobile operators and chip manufacturers have high bargaining power as suppliers due to their control over the technology and infrastructure required for developing eSIM solutions.
Threat of new substitutes: The threat of substitutes is low as there are limited alternatives available to eSIM technology that provide the same connectivity and flexibility.
Competitive rivalry: Intense competition exists among key players to gain market share.
SWOT Analysis
Strength: eSIM offers flexibility to users by removing the need for a physical SIM card. It allows hassle-free connectivity across multiple devices.
Weakness: Higher costs associated with the technological infrastructure required for eSIM compatibility. Limited awareness among consumers about the eSIM technology.
Opportunity: Growing bring your own device trend and increasing adoption of IoT devices present an opportunity for eSIM providers to expand.
Threats: Security concerns around managing digital identities on eSIM pose a threat. Dependence on mobile operators for activation and provisioning of profiles.
Key Takeaways
The global eSIM market is expected to witness high growth, exhibiting CAGR of 16% over the forecast period, due to increasing adoption of IoT devices. By 2030, the market size is projected to reach US$ 74.5 Bn.
Regional analysis: North America dominates the global eSIM market currently due to high penetration of IoT technology. Asia Pacific is anticipated to grow at the fastest pace during the forecast period owing to large-scale investments by key players and rising initiatives to integrate eSIM technology across different devices in countries like China and India.
Key players operating in the eSIM market are Infineon Technologies AG, STMicroelectronics, Deutsche Telekom AG, Giesecke+Devrient Mobile Security GmbH, Thales Group, KORE Wireless, Arm Limited, Truphone Limited, Workz Group, Sierra Wireless, NXP Semiconductors, AT&T. These companies are focused on strengthening their product portfolio through partnerships, collaboration with mobile operators and strategic acquisitions.
Get more insights on this topic: https://www.newswirestats.com/esim-market-size-and-opportunity-analysis-2023-2030/
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